Arizona variant. This is a Arizona-specific version of the Homeowners Insurance Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Homeowners Insurance Estimator.
Homeowners insurance in Arizona typically runs about 0.30%–0.40% of home value per year. On the $425,000 median home, that's roughly $1,488 annually.
What Arizona homeowners insurance covers
Premiums fund dwelling coverage, personal property, liability, and loss of use. Arizona's $425,000 median home value sets the baseline dwelling coverage and therefore the premium.
Local risk - wildfire, hurricane, hail, flood - drives big swings. Flood is separately insured. Use the estimator to refine the Arizona average for your build cost and deductible.
About taxes and housing in Arizona
Arizona uses a flat individual income tax of 2.5%, one of the lowest flat rates in the nation.
Arizona keeps property taxes relatively low and limits how much a primary residence's taxable value can rise each year.
Arizona's economy is driven by technology, tourism, and rapid population growth, with a warm climate that attracts retirees and remote workers.
Worked example: $425,000 home
$425,000 × 0.35% ≈ $1,488/year ($124/month). Replacement-cost coverage, not market value, ultimately sets the premium - land value is excluded.
Quick reference
- State income tax: Flat 2.5% as of 2023
- State sales tax: 5.6% (plus 2.80% avg local)
- Median home value: $425,000
- Median household income: $74,568
- Effective property tax rate: 0.51%
- Avg auto insurance: $1,812/yr
Frequently Asked Questions
How much is homeowners insurance in Arizona?
Roughly $1,488/year on the $425,000 median home, varying with local catastrophe risk.
Does homeowners insurance cover floods in Arizona?
No - flood coverage is purchased separately through the NFIP or private insurers.